x Abu Dhabi, UAEFriday 19 January 2018

Ex-employee granted Dh35m payout over dismissal

An appeals court awards settlement for arbitrary dismissal.

DUBAI // In one of the largest payouts ever granted by a Dubai court in an employment case, a former senior official at Majid Al Futtaim Group was awarded more than Dh35 million in an arbitrary dismissal case.

The payout was ordered by the Court of Appeals after a lower court ruled against the claimant. The unnamed former employee, who no longer lives in the UAE, was seeking payment for arbitrary dismissal and other contractual entitlements that had been negotiated between the claimant and the company.

"It's good to see the Court of Appeals be bold enough to hand down a decision like this to uphold contractual rights," said Clare Raven, a Hadef and Partners lawyer who worked on the case.

A Majid Al Futtaim spokesman said the company would appeal the decision.

"The Court of First Instance ruled against the claimant and we will now take the case to the higher court," the spokesman said.

"We believe our case is strong and we will vigorously defend the rights of the company. The appeal ruling is not final and is still subject to the ultimate review of the Court of Cassation."